#365 Nick Sleep's Letters: The Full Collection of the Nomad Investment Partnership Letters

Traders have many small ideas and we have one big idea good luck to them

the founder is the guardian of the company's Soul

book it is written by Bob kierin who's the founder of fenol that book and the way Bob ran fenol all centers around this one idea that the leader of a company has to keep the entire organization committed to a common goal Costco's common goal is that we are going to commit to this everyday low

pricing strategy and they commit to it every single minut

you cannot just focus on the outputs if you do you're going to sell you have to really understand the central engine of success you have to understand that business deeply

investing is a very rare skill it is not distributed widely and will never be and that has to do with behavior

we have argued that the biggest error an investor can make is the sale of Walmart or Microsoft in the early stages of the company's growth we wonder would selling Amazon today be the equivalent mistake of selling Walmart in 1980

e says the biggest mistake an investor can make is to sell a stock that goes on to rise tenfold not from owning something into bankruptcy but that's what everyone thinks at least judging by the questions that we get from our clients we got questions about our holding in Northwest Airlines rather than the sale of Apple earlier this year but selling

time is a friend of the wonderful business and the enemy of the mediocre

why competing with Costco is so hard to do the firm is not interested in today's static assessment of performance it is managing the business as to raise the probability of

long-term success when Costco continues to recycle cost savings to the consumer it is lowering the probability of failure